Sir Richard Branson called on the Government today to allow the private sector to plug the funding gap which is threatening the growth of the railways.

London to Birmingham journey times of less than 60 minutes would be just one benefit from letting train companies play a bigger role in financing and running the railways.

"We need private vision and investment to take on the challenge that taxpayers are unable and unwilling to fund," said Sir Richard, whose Virgin Trains company operates the West Coast Main Line.

Speaking at Euston station in London today, he said that greater private sector involvement in the railways could lead, within the next 10 years, to:

:: Construction of an underground extension to Birmingham International station with a direct link from there to the West Coast line at Lichfield using the existing M6 corridor;

:: Journey times of under four hours between London and Glasgow;

:: Link the West Coast line at its southern end with both Heathrow and HS1 (the High Speed 1 Channel Tunnel rail link) to Europe;

:: Strip down and modernise crumbling stations and replace them with fit-for-purpose buildings that work efficiently for rail passengers and can be a source of pride to the local community.

Sir Richard said all this would be possible if the Government allowed longer rail franchises of between 20 and 30 years which were linked to past performance and future investments.

Improvements would also come about if the Government engaged and encouraged private sector investment, delivered an effective regulatory system of Network Rail and evaluated the environmental benefits, and economic gains to the English regions, Scotland and Wales as part of any investment case.

He said that, within this partnership with Government, train operating companies would play a much larger role in timetable developments, train design and procurement, station and route developments and funding.

Sir Richard said: "With the strains on public finances increasing, I believe the private sector will be crucial in driving rail investment over the next 20 years.

"Private companies such as Virgin have already transformed Britain's trains into one of the most modern fleets in Europe. But the job isn't finished yet. We are running 21st century trains through crumbling 19th century stations and along track still in need of upgrading.

"The Government must not strangle this investment potential by having limited, short-term contracts that stifle innovation. The private sector is ready to go, but we need the right conditions and the green light to invest for the long term."

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